You are on page 1of 9

8/14/2017 Homework Help Center | Roger CPA Review

(/) (/cart?
last_page=homew
help-
My Dashboard (/dashboard) > Homework Help Center center)

As a Free Trial Student you are able to browse the Homework Help Center, but will not be able to post any
questions. Upgrade your course to get answers to your CPA Exam questions from expert CPAs!

Homework Help Center


QUESTIONS (/HOMEWORK-HELP-CENTER)

TAGS (/HOMEWORK-HELP-CENTER/TAGS?SORT_BY=NID&SORT_ORDER=DESC)

SEARCH

QUESTION ID#: 3021711 UPDATE ANSWER KEY 3:50 PM 9 Aug 2017


1
Answer (/HOMEWORK-HELP-CENTER/QUESTION-ID-3021711-
UPDATE-ANSWER-KEY)
0 Views
When multiplying $105,000 x 1.1 = 115,500, not 115,000
_____

Correct! The manufacturer must sell 19,250 cups to break even. First,
prior year xed costs are computed by multiplying the contribution
margin per unit by the breakeven point in units. KennethChen3

Contribution Margin = Selling Price - Variable Costs

Contribution Margin = $7.50 - 2.25 = 5.25

Then,

Fixed Costs = Contribution Margin per Unit x Breakeven Point in Units

Fixed Costs = $5.25 x 20,000 units = $105,000

https://www.rogercpareview.com/homework-help-center 1/9
8/14/2017 Homework Help Center | Roger CPA Review

Since xed costsincreased 10% from last year, current year xed costs
are $115,000 ($105,000 x 1.1). Current year variable cost is $3 ($2.25 x
133.3%). Current year contribution margin is $6 (selling price of $9 -
variable cost of $3). Current year breakeven point is computed as
follows:

Breakeven Point in Units = Fixed Costs Contribution Margin per Unit

Breakeven Point in Units = $115,000 $6

Breakeven Point in Units = 19,250 (rounded)

(a) Incorrect! The manufacturer must sell 19,250 cups to break even.
First, prior year xed costs are computed by multiplying the
contribution margin per unit by the breakeven point in units.

Contribution Margin = Selling Price - Variable Costs

Contribution Margin = $7.50 - 2.25 = 5.25

Then,

Fixed Costs = Contribution Margin per Unit x Breakeven Point in Units

Fixed Costs = $5.25 x 20,000 units = $105,000

Since xed costs increased 10% from last year, current year xed costs
are $115,000 ($105,000 x 1.1). Current year variable cost is $3 ($2.25 x
133.3%). Current year contribution margin is $6 (selling price of $9 -
variable cost of $3). Current year breakeven point is computed as
follows:

Breakeven Point in Units = Fixed Costs Contribution Margin per Unit

Breakeven Point in Units = $115,000 $6

Breakeven Point in Units = 19,250 (rounded)

FAR - LEASES (SECTION 12) (/HOMEWORK-HELP- 3:45 PM 9 Aug 2017


3
Answers CENTER/FAR-LEASES-SECTION-12)

0 Views Hello,
I'm working on IPQ 3022390. Lessee Company enters into a lease on
January 1, 20X2 that is accounted for as a capital lease. The lease calls
for quarterly payments of $15,000, beginning on January 1, 20X2, and
continuing for 5 years. The last payment is due on October 1, 20X6.
The lease has an implicit annual interest rate of 8%.
laura.c3600
What amount will Lessee report as a lease obligation on its nancial
statements dated December 31, 20X2?

https://www.rogercpareview.com/homework-help-center 2/9
8/14/2017 Homework Help Center | Roger CPA Review

A: 203,657
I'm wondering if the question was slightly di erent and asked for the
lease obligation as of August 31, 2012 would the answer be 214,370?
Basically to answer the question, you look at the balance as of the
most recent quarter's payment?

Thanks!

RENTAL EXPENSES AND DAYS OF PERSONAL USE 2:54 PM 9 Aug 2017


2
Answers (/HOMEWORK-HELP-CENTER/RENTAL-EXPENSES-AND-
DAYS-PERSONAL-USE)
0 Views
The answer given to this question is incorrect.

In 20X14 Adams, an individual, changed residences and converted her


former residence into a passive rental activity. In 20X14 Adams lived in
the former residence for 60 days, incurred $7,000 in qualifying
expenses preparing the property for rental, and rented it to a tenant nancyseaders
for 90 days, receiving $3,000 in rent. Before considering the rental
activity, Adams adjusted gross income for 20X14 is $120,000. After
considering the rental activity, what should Adams 20X14 adjusted
gross income be?

Your answer was incorrect


Incorrect. Since Adams occupied the residence for more than 14 days,
the rental income of $3,000 is included in income and the expenses
are deductible to the extent of gross rental income. Since expenses
exceed rental income, only $3,000 would be deductible and the rental
property would result in neither taxable income nor a deductible loss.
Adams will have adjusted gross income of $120,000, the amount
before considering the rental activity.

Adams DID NOT occupy the residence for more than 14 days of
personal use. There were 0 days of personal use after the property
was converted to rental use.

See the 2016 IRS instructions for Schedule E, page E-5.


"Do not count as personal use:
Any day you spent working substantially
full time repairing and maintaining
the unit, even if family members
used it for recreational purposes on that
day, or
Any days you used the unit as your
main home before or after renting it or

https://www.rogercpareview.com/homework-help-center 3/9
8/14/2017 Homework Help Center | Roger CPA Review

o ering it for rent, if you rented or tried


to rent it for at least 12 consecutive
months (or for a period of less than 12
consecutive months at the end of which
you sold or exchanged it)."

Adams changed residences and converted his old house to a rental.


He has a new home now, he will not be moving back to the home he
rented. He is going to rent it for at least 12 consecutive months or until
he sells it, therefore the days he used the unit as his main home
before o ering it for rent do not count as personal use days.

Please correct this answer in the online questions, or change the


question to sidestep this issue, so that future CPA's are not taught
incorrectly. CPA's who learned this incorrect information could cost a
taxpayer a lot of money, and if the taxpayer tried a di erent tax
preparer the next year, the new preparer might discover the error and
amend the return, saving the taxpayer lots of money. In those cases,
the CPA generally looses the client for life.

REG SECTION 144 (/HOMEWORK-HELP-CENTER/REG- 2:33 PM 9 Aug 2017


1
Answer SECTION-144)

0 Views How is Section 144 (exemption to 505 & 506) helpful? 505 & 506
securities can be sold after 2 years anyway. I don't see the bene t with
Section 144 exemption. Please clarify.

Neetha

BEC: IPQ#3020716 IT RISKS (/HOMEWORK-HELP- 2:28 PM 9 Aug 2017


2
Answers CENTER/BEC-IPQ3020716-IT-RISKS)

0 Views Hi,

Aren't "bypassing" and "circumvention" synonyms? The following two


answers seem to be saying the exact opposite of each other.

"The risk of manual intervention, which is the ability of someone to


alter les by BYPASSING the appropriate programs is a risk associated
torrite4
with an IT environment.

https://www.rogercpareview.com/homework-help-center 4/9
8/14/2017 Homework Help Center | Roger CPA Review

"When programmed properly, programs are di cult to CIRCUMVENT


and exceptions are unlikely to be permitted. This is an advantage,
rather than a risk, of an IT environment.

Is this just unclear wording from AICPA or am I missing something


important?

Thanks,

Torrite4

DISCUSSING AUDIT PROCEDURES WITH THE CLIENT'S 1:25 PM 9 Aug 2017


1
Answer MANAGEMENT (/HOMEWORK-HELP-
CENTER/DISCUSSING-AUDIT-PROCEDURES-CLIENTS-
0 Views MANAGEMENT)

During the initial planning phase of an audit, a CPA most likely would...

A) Identify speci c internal control activities that are likely to prevent


fraud.
B) Evaluate the reasonableness of the clients accounting estimates. oogbor
C) Discuss the timing of the audit procedures with the clients
management.
D) Inquire of the clients attorney as to whether any unrecorded claims
are probable of assertion.

Correct answer is C.

I thought that discussing audit procedures with the client's


management is not a good thing to do. According to our book on the
top of page 1-23, "the auditor should not discuss in detail the audit
procedures that will be preformed, partly because these procedures
will vary depending on the evidence obtained during the engagement,
and partly because the e ectiveness of many procedures depends on
the client not knowing in advance what speci c evidence will be
examined.

Please explain.

Thanks.

SEC 179 DEP DEDUCTION (/HOMEWORK-HELP- 12:51 PM 9 Aug 2017


1
Answer CENTER/SEC-179-DEP-DEDUCTION)

https://www.rogercpareview.com/homework-help-center 5/9
8/14/2017 Homework Help Center | Roger CPA Review

0 Views Is sec 179 Dep deduction available only 3/5/7 years tangible personal
property? or even on 10/15/20 years tangible personal properties?
Thanks

ca.amoldesai@gmail.com

4231876 ERROR IN ANSWER KEY (/HOMEWORK-HELP- 12:11 PM 9 Aug 2017


7
Answers CENTER/4231876-ERROR-ANSWER-KEY)

0 Views Hi there
the answer key is missing the $2,000 (tuition deduction) on line 34 on
the face of the 1040.

DP85

DIRECT FINANCING LEASE (/HOMEWORK-HELP- 9:43 AM 9 Aug 2017


1
Answer CENTER/DIRECT-FINANCING-LEASE-0)

0 Views Hello,
Could you please show the lessor's journal entries?
Thanks in advance

A lessor entered into a lease on December 31, 20X2 that will be


accounted for as a direct nancing lease. The lease calls for 10
payments, beginning on December 31, 20X3, of $4,000 each. The constantin.sem
lessees incremental borrowing rate is 6% and the present value of an
ordinary annuity of $1 at 6% for 10 periods is 7.360. The machine has
a 10 year life and cost the lessor $30,000. How much pro t or loss will
be recognized by the lessor in 20X2 and how much depreciation
expense will be recognized by the lessee in 20X3, assuming the
machine is depreciated on a straight-line basis?

The lessor will recognize no gain or loss in 20X2 and the lessee will
recognize depreciation expense of $2,944 in 20X3.

https://www.rogercpareview.com/homework-help-center 6/9
8/14/2017 Homework Help Center | Roger CPA Review

ACCRUAL BASIS TAXABLE INCOME (/HOMEWORK-HELP- 7:27 AM 9 Aug 2017


2
Answers CENTER/ACCRUAL-BASIS-TAXABLE-INCOME)

0 Views Ace Rentals Inc. an accrual -basis taxpayer ,reported rent receivable of
$35000 and $25000 in its Year 2 and Year 1 balance sheets.,
respectively .During Year 2 ,Ace received $50000 in rent payments and
$5000 in nonrefundable rent deposits . In Ace's corporate income tax
return , what amount should Ace include as rent revenue ?

A- $55000 ahmedaisel2017

b-$ 60000

c- $ 50000

D- $ 65000

I made it $55000 , because its related income tax return not nancial
statement,$50000 rent collection + $ 5000 not refundable . on the
other hand , they made it $65000 . could you please explain ?

21441 (/HOMEWORK-HELP-CENTER/21441) 7:03 AM 9 Aug 2017


2
Answers
Please explain why the answer isn't to test all controls (as page3-41
0 Views explains an integrated audit tests all controls).

Thank you very much,


Kan

Kan

FAR 12 ACCOUNTING FOR LEASES - OPERATING LEASE 3:48 AM 9 Aug 2017


1
Answer (/HOMEWORK-HELP-CENTER/FAR-12-ACCOUNTING-
LEASES-OPERATING-LEASE)
0 Views
Hello,

On the question below the correct answer involves recognizing $4,000


in rental revenue in the rst year, when in fact $8,000 was collected
because they gave the rst 6 months free rent. To me this doesn't
make since $8,000 was collected. Jason Lewis

https://www.rogercpareview.com/homework-help-center 7/9
8/14/2017 Homework Help Center | Roger CPA Review

Wall Co. leased o ce premises to Fox, Inc. for a ve-year term


beginning January 2, 20X2. Under the terms of the operating lease,
rent for the rst year is $8,000 and rent for years 2 through 5 is
$12,500 per annum. However, as an inducement to enter the lease,
Wall granted Fox the rst six months of the lease rent-free. In its
December 31, 20X2, income statement, what amount should Wall
report as rental income?

Correct Answer:

Over the 5-year term of the lease, Wall will receive the following rents:

Months 1-6 - 1/2 year @ $0 or $0

Months 7-12 - 1/2 year @ $8,000 or $4,000

Months 13-60 - 4 years @ $12,500 or $50,000

The total rent to be received will be $54,000 to be recognized


uniformly over the 5-year term of the lease. Wall will recognize
$54,000/5 years or $10,800 as rental income in 20X2.

CORPORATE REQUIREMENT, ANNUALIZED INCOME 1:52 AM 9 Aug 2017


1
Answer (/HOMEWORK-HELP-CENTER/CORPORATE-
REQUIREMENT-ANNUALIZED-INCOME)
0 Views
Hi, I am little confused on annualized income method

On the book says, (e.g, the income for the rst 3 months will be
divided by 3/12 to estimate the full year income in determining the
rst quarter estimated payment)
wks2000
I cannot understand how full year income will be determined by
dividing rst quarter income with 3/12

Thanks for your help!!

QUESTION ID: 3021715 (/HOMEWORK-HELP- 12:05 AM 9 Aug 2017


1
Answer CENTER/QUESTION-ID-3021715)

0 Views Exam Question: In the market for widgets, if demand increases and
supply decreases, based on this information, what would economic
theory predict?

https://www.rogercpareview.com/homework-help-center 8/9
8/14/2017 Homework Help Center | Roger CPA Review

If the Demand curve increases and the supply decreases, seems like
Price would be indeterminate and the quantity would go up if the
Demand curve shifts to the right and the supply curve also shifts to the
right causing the intersect to only move to the right (increase in
quantity) with no change in the price (indeterminate). Shouldn't the
answer be the 3rd option (Price will be indeterminate and quantity will
increase) and not 1st option (Price will increase, and change in
quantity is indeterminate) lhalsema2

DIFFERENCE BETWEEN CAPITAL LOSSES AND ORDINARY 9:36 PM 8 Aug 2017


1
Answer LOSSES (/HOMEWORK-HELP-CENTER/DIFFERENCE-
BETWEEN-CAPITAL-LOSSES-AND-ORDINARY-LOSSES)
0 Views
What is the di erence between short term vs long term capital losses
and ordinary losses for both corporations and individuals?

erickatz

rst (/homework-help-center) previous (/homework-help-center?page=4)

2 (/homework-help-center?page=1) 3 (/homework-help-center?page=2)

4 (/homework-help-center?page=3) 5 (/homework-help-center?page=4) 6

7 (/homework-help-center?page=6) 8 (/homework-help-center?page=7)

9 (/homework-help-center?page=8) 10 (/homework-help-center?page=9)

next (/homework-help-center?page=6) last (/homework-help-center?page=1202)

STUDY WITH US

Courses & Products (/cpa-courses)

https://www.rogercpareview.com/homework-help-center 9/9

You might also like